SALES PROMOTION

Sales Promotion is one of the elements of the promotional mix.

(The primary elements in the promotional mix are advertising, personal selling, direct
marketing and publicity/public relations). Sales promotion uses both media and non-
media marketing communications for a pre-determined, limited time to increase
consumer demand, stimulate market demand or improve product availability. Examples
include contests, coupons, freebies, loss leaders, point of
purchase displays, premiums, prizes, product samples, and rebates.
Sales promotions can be directed at either the customer, sales staff,
or distribution channel members (such as retailers). Sales promotions targeted at
the consumer are called consumer sales promotions. Sales promotions targeted at
retailers and wholesale are called trade sales promotions.
Sales promotion includes several communications activities that attempt to provide added
value or incentives to consumers, wholesalers, retailers, or other organizational customers
to stimulate immediate sales. These efforts can attempt to stimulate product interest, trial,
or purchase. Examples of devices used in sales promotion include coupons, samples,
premiums, point-of-purchase (POP) displays, contests, rebates, and sweepstakes.

Sales promotion is implemented to attract new customers, to hold present customers, to

counteract competition, and to take advantage of opportunities that are revealed by
market research. It is made up of activities, both outside and inside activities, to enhance
company sales. Outside sales promotion activities include advertising, publicity, public
relations activities, and special sales events. Inside sales promotion activities include
window displays, product and promotional material display and promotional programs
such as premium awards and contests.
Sales promotions often come in the form of discounts. Discounts impact the way
consumers think and behave when shopping. The type of savings and its location can
affect the way consumers view a product and affect their purchase decision. The two
most common discounts are price discounts (“on sale items”) and bonus packs (“bulk
items”).Price discounts are the reduction of an original sale by a certain percentage while
bonus packs are deals in which the consumer receives more for the original price. Many
companies present different forms of discounts in advertisements, hoping to convince
consumers to buy their products

 INTRODUCTION

Sales promotion offers a direct inducement to act by providing extra worth over and
above what is built into the product at its normal price. These temporary inducements are
offered usually at a time and place where the buying decision is made. Not only are sales
promotions very common in the current competitive market conditions, they are
increasing at a fast pace. These promotions are direct inducements.

In spite of the directness, sales promotions are fairly complicated and a rich tool of
marketing with innumerable creative possibilities limited only by the imagination of
promotion planners. Sales promotion is often referred to by the names of ‘extra purchase
value’ and ‘below-the-line selling’.

Today we find companies in almost all sectors offering some sort of a promotion
scheme. These sectors range from automobiles to beverages, from financial services to
foods, from household durables to services, from household products to business
products, from personal care to textiles and apparel.

 Purpose of sales promotion:

• Attract new tries or brand switchers

• Reward loyal customers
• Increase repurchase rates

Sales promotion refers to many kinds of incentives and techniques directed towards
consumers and traders with the intention to produce immediate or short-term sales
effects.

Sales promotion is a promotional marketing technique designed to create sales for a

product over a defined period of time. Sales promotion activities are measurable in terms
of products moved, coupons redeemed, number of contest entries, or other quantifiable
count.

Sales promotions are short-term marketing techniques used by a manufacturer for a

specific purpose, like increasing market share or to encourage sales during off-peak
periods. Sales promotions are often one component in an advertising or marketing
campaign. A variety of sales promotion tools are available, such as price reductions,
product giveaways and special trial periods.

In marketing, sales promotion is one of the four aspects of promotion. Sales promotions
are non-personal promotional efforts that are designed to have an immediate impact on
sales. Sales promotion is media and non-media marketing communications employed for
a per-determined, limited time to increase consumer demand, stimulate market demand or
improve product availability.

“Sales promotion, a key ingredient in marketing campaign, consists of a diverse

collection of incentive tools, mostly short term, designed to stimulate quicker or greater
purchase of particular products or services by consumers or the trade.”
“Sales Promotion, in a specific sense refers those sales activities that supplement both
personal selling and advertising an co-ordinate them an help to make them effective, such
as displays, shows and expositions, demonstrations, an other non-recurrent selling efforts
not into the ordinary routine.”

We can define sales promotions as ‘marketing activities usually specific to a time period,
place or customer group, which encourage a direct response from consumers or
marketing intermediaries, or an added item, service or opportunity.

ADVANTAGES OF SALES PROMOTION

Mainly there are 4 advantages of sales promotion they are:

· Price discrimination.
· Effect on consumer behaviour.
· Effect on trade behaviour.
· Regional Difference.

DISADVANTAGES OF SALES PROMOTION

Mainly there are 4 disadvantages of sales promotion they are:

· Increased price sensitivity.
· Quality image may become tarnished.
· Merchandising support from dealers is doubtful.
· Short-term orientation.

OBJECTIVES OF SALES PROMOTION

a. To introduce new products or services:
Sales promotion is often used to motivate prospective consumers to try new products and
services. Dealers are also induced to introduce new products and services in the market.
Usually, free samples are provided through dealers during such introduction. Similarly,
discounts in cash or goods may also be offered to dealers to stock new products or deal
with new services. Free samples, trade discounts, cash discounts are basically sales
promotion measures.

b. To attract new customers:

Sales promotion measures also play an important role in attracting new customers for an
organization. Usually, new customers are those persons that are won away from other
firms. Samples, gifts, prizes, etc. are used to encourage consumers to try a new brand or
shift their patronage to new dealers.
c. To induce existing customers to buy more:
Sales promotion devices are most often used to induce the existing customers of a firm to
buy more. Product development, offering three products at the cost of two, discount
coupons, are some of the sales promotion devices used by firms to motivate the existing
buyers to buy more of a specific product.

d. Helps the firm to remain competitive:

Most of the companies undertake sales promotion activities in order to remain in the
competitive market. Therefore, in the modern competitive world no firm can escape the
responsibility of undertaking sales promotion activities.

e. To increase sales in off-seasons:

Many products like air-coolers, fans, refrigerators, air-conditioners, cold drinks, room
heaters, etc. have seasonal demand. Manufacturers and dealers dealing with such type of
goods make every effort to maintain a stable demand throughout the year.

In other words, firms try to encourage the purchase of such goods in off-seasons also.
That is the main reason behind discounts and off-season price reductions of such items in
the market during slack seasons.

f. To add to the stock of the dealers:

Dealers like wholesalers and retailers usually deal with a variety of goods. Their selling
activity becomes easier when the manufacturer supplements their efforts by sales
promotion measures. When a product or service is well supported by sales promotion,
dealers are automatically induced to have more of such items.

 WINE DINNER

A wine dinner is a meal where every course is paired with wine. Thus, the number of courses
you have will determine how many wines should be paired. And yes, a wine dinner will pair
wine with dessert too.

Wine dinner

A wine dinner is a meal where every course is paired with wine. Thus, the number
of courses you have will determine how many wines should be paired. And yes, a wine
dinner will pair wine with dessert too! You can create and host your own wine dinners
using the format below.

A Wine Dinner from Starters to Dessert

Nearly all wine dinners follow a similar format starting with lighter, more delicately
flavored wines (and food) and ending with bolder, more intense wines. The reason for
this is because our sense of taste becomes more dull over the course of the entire meal.
It’s also why popular desserts are so rich and intense!

WHISKEY DINNER

A glass of whiskey and the company good friends; life seems perfect. There are more to
whisky than its fine taste and smoothness. Whiskey is a distilled alcoholic beverage made
from fermented grain mash.

 HAPPY HOUR

Happy hour is a marketing term for a period of time in which a venue (such as a restaurant, bar,
bowling alley, stadium, or state or county fair) offers discounts on alcoholic drinks, such as beer,
wine, and cocktails. Free Hors d’oeuvres, appetizers and discounted menu items are often served
during happy hour. “happy hours is the hour you make your customer’s happy” these are just the
shooten woods to visualize the spirit of this fine of program. Happy hour is the familiar classical
marketing term in the F&B business . if means ‘hours of happiness in restaurant , bars or coffee
hours, mainly because of exclusive discount on prices which means cheap wine, beer, meals or
complete special menus at certain hours. Every successful F&B business brings who is booking
for new and fresh ideas to enlarge with customers happy how to enhance the business. Its
entirely that happy hours is one of the best ways to make customers happy, and that happy hours
takes a significant impact on overall profit and also customers loyalty.

Origin
The words "happy" and "hour" have appeared together for centuries when describing
pleasant times. In act I, scene 2 of William Shakespeare's King Henry V the protagonist
says, "Therefore, my lords, omit no happy hour/That may give furtherance to our
expedition..." The use of the phrase "happy hour," to refer to a scheduled period of
entertainment is of much more recent vintage.
One possible origin of the term "Happy Hour," in the sense of a scheduled period of
entertainment, is from the United States Navy. In early 1913, a group of "home makers"
called the "Happy Hour Social" organized "semi-weekly smokers"
onboard USS Arkansas.[1] The name "Happy Hour Club," "Happy Hour Social Club,"
and similar variants, had been in use as the names of social clubs, primarily by women's
social clubs, since at least the early 1880s. By June 1913, the crew of Arkansas had
started referring to their regularly scheduled smokers as "Happy Hours." [2] The "Happy
Hours" included a variety of entertainment, including boxing and wrestling matches,
music, dancing and movies.[3] By the end of World War I, the practice of holding "Happy
Hours" had spread throughout the entire Navy.[4]

'Happy Hour is the Hour you make your customers Happy.' These are just the shorten
words to visualize the spirit of this kind of program. Happy hour is the familiar classical
marketing term in the F&B businesses. It means 'hour of happiness' in restaurants, bars
or coffee houses, mainly because of exclusive discounts on prices which mean cheap
wine, beer, meals or complete special menu at certain hours. Every successful F&B
business owner who is looking for new and fresh ideas to engage with customers use
Happy Hour to enhance the business performance. It's entirely that Happy Hour is one
of the best ways to make customers happier, and that Happy Hour takes a significant
impact on the overall profit and also customer loyalty.

The role of Happy Hour:

Revenue/Brand Customer Menu

Increase the sale revenue in the low Encourage customers to visit your Promote new foods/drinks
traffic time range stores more often in menu

Excite your customers to engage with Present signatures of your

Drive new traffic to your store
them store

Used as the material for social media Viral your store by referring to their
-
content friends

True Stories:
#1. Price of food and drink is a key reason
63% of all surveyed were attracted with low prices of foods during Happy Hour program
in F&B stores. Also, 45% thought that low rates of foods and drinks during happy hour
are a great reason to come and visit the restaurant, bar or coffee shop. Moreover, 29%
pointed out that happy hour is a lower-priced alternative to a dinner out at a restaurant,
although almost as many (22%) said they appreciated the chance to stay on for dinner.

#2. Late night is an opportunity to attract younger

customers
More than half of customers under the age of 35 make late-night restaurant visits
several times a month, as compared to just a quarter of customers over 35. Again, one-
third of 18- to 34-year-olds agree that they would visit restaurants late more often if
these locations remained open later, compared to just 16% of consumers aged 35 and
older.

#3. Beer is the favorite choice for Happy Hour

42% of respondents stated that they were most likely to order a beer, making it the most
popular happy hour drink. Cocktails mixed drinks and soft drinks are also the second
choices with 38% and 37%. Among various kinds of beers, customers also make their
attention in domestic beer with 59% while just 20% of respondents stated that they
preferred imported beer at happy hour.
 Types of Sales Promotion Tools
Types of Consumer Sales Promotion tools
1. Samples
Samples are one of the most important tools of sales promotion. Samples are defined as
offers to consumers of a small amount of a product for trial. Free samples are given to
consumers to generate their interest in the product. Samples help consumers verify the
quality of the product.

2. Coupons
A coupon is a certificate that fetches buyers a saving when they purchase a specified
product. Coupons are generally issued along with the product. They entitle the holder to
either a specified saving on a product or a cash refund.

3. Demonstration
Demonstration is required when products are complex and of a technical nature.
Customers are educated as to how to make proper use of the product. Demonstration of
products induces customers to buy. Demonstrations are provided free of cost.

4. Contests
Contests are the promotion events that give consumers the chance to win something
such as cash, trips or goods. Contests are conducted to attract new customers. They
introduce new product by asking the prospects to state the reasons for the purchase of
the product.

5. Cash refund offer

Cash refund offers are rebates allowed from the price of the product. It is an offer to
refund part of the purchase price of a product to consumers who send a proof of
purchase to the manufacturer.

Moreover, if the purchaser is not satisfied with the product, the whole price or part of it
will be refunded. Cash refunded offer is stated on the package.

6. Premium
Premium refers to goods offered either free or at low cost as an incentive to buy a
product. A premium may be inside the package, outside it or received through mail. The
reusable package itself serves as a premium.

Premium is generally offered for consumer goods such as soap, toothpaste, etc.
Premium may be of several kinds — direct premium, reusable container free in mail
premium, a self liquidating premium, trading stamps, etc.

7. ‘Price off’ offer

Goods are sold at reduced prices during slump season. Reduction in prices stimulates
sale of goods.
8. Consumer sweepstakes
A sweepstakes calls for consumers to submit their names for a draw. Names of
consumers are included in a list of prize winning contest. The lots are drawn and the
winners get prizes.

9. Buy back allowances

Allowances are granted to buyers on the basis of their previous purchases. In other
words, buy back allowances are given for new purchases, based on the quantity of goods
bought previously.

 CORPORATE DISCOUNT

Corporate rates are special rates offered by car rental companies, airlines, hotels, and/or
other travel providers to special groups of people.
For example, a major corporation like IBM may negotiate corporate rates with a hotel
chain like Marriott to obtain a steeply discounted rate that will be used for corporate
travel for its employees.
Corporate rates may typically start at ten percent off the regularly published rate (or
rack rates) for hotels. In exchange for the agreed discount, the hotel gains more regular
and potentially loyal customers, as well as potential referral business. Of course,
corporate rate discounts can go far beyond the basic ten percent starting point.
And remember, you don't have to be a big corporation to get a corporate rate. Simply
contact a specific hotel or hotel chain and ask them for a corporate rate.

Corporate Hotel Rates

Getting a corporate hotel rate usually requires a traveler to be associated with a
company that has a corporate rate. If your company does have a corporate hotel rate,
business travelers may be able to use them regardless of whether they are traveling for
business or not. Be aware that once you've booked a corporate hotel rate, you may still
have to show your business card or corporate ID in order to obtain that rate while
traveling.
Another approach for individual travelers or small businesses to save money on hotel
rates is by joining an organization that already has negotiated corporate rates with
hotels or hotel chains. One such service that I frequently use is CLC Lodging's Check Inn
Card. When you sign up with CLC Lodging they assign you a discount rate for the hotels
in their system. They provide discounted rates for select hotels in two-week windows. I
have found these rates are typically 25% or more off the best available rates for such
hotels.
As the title suggests, corporate discount refers to the discounts provided to employees of a
corporate enterprise. These discounts can be spread over a wide range of categories like health,
travel, shopping, real estate, etc. … A great way to provide your employees with exciting
discount benefits is Cashback offers.Discount are eduction to a basic price of goods or servies.
They can occer anywhere in the distribution chanel,modifying either the manufacture’slist price
(determined by the manufacture and ofton priented on the package)the retail price (set by the
retailer and often attached to the product with a stricker)or the list price(which is quated to a
potential buyer, usually in uritten form.)

Food festival
A food festival is a festival, usually held annually, that uses food, often produce, as its
central theme. These festivals have always been a means of uniting communities
through celebrations of harvests and giving thanks for a plentiful growing season.

Food has always been my source of happiness. Is it same for you? Well, I assume it is! For a
foodler (foodie + traveller), a country like India is the best place to savour some delectable
dishes because of the country’s diverse culture that gives people a range of tastes on to their
plates. In fact, there ain’t a better way to experience the soul of India than trying out its variety of
food on offer. Now we all know, how huge India is, and its is practically impossible to visit
every state and city for a culinary experience. But what if we tell you that you no longer have to
travel like crazy to get that perfect food experience in India? What if we say that all the Indian
food along with top international cuisines can be made available under one roof?! Yes, from
scrumptious food to refreshing drinks to grooving music to the cosy ambiance are all coming for
you in varied food festivals in India. Excited to learn about them? Here! I present my handpicked
list of some top food festivals of India.

Navi Mumbai Food Truck Fest

One of the best food festivals in entire India is Mumbai Food Truck Fest. The event is perfect for all
the food junkies to come and enjoy a good time amidst delectable food, drinks and music. As the
name suggests, the event brings some fabulous street food trucks from around the country to serve
their best delicacies to the visitors. Navi Mumbai Food Truck Fest is also one of the kids-friendly
food festivals in India as there is a dedicated section for the children where they can enjoy playing
games.
The Grub Fest
-A perfect amalgamation of food, fun and entertainment, The Grub Fest is one of the largest food
events in India. Held in Mumbai, Delhi and Pune, The Grub Fest includes popular restaurants, an
organic food market, music performances, and culinary workshops. Apart from this, for the food
lovers, the festival also holds a dedicated arena, called Grub Mile, for mini-food trucks. Adding
altogether a different charm in the entire festival are the food-based films. Just imagine how cool it
would be to eat your favourite food while watching a movie like Ratatouille!

Goa Food Cultural Festival

Goa is counted amongst the topmost happening destination in India. And adding charm in the entire
tourism scene here is the Goa Food Cultural Festival which enjoys a huge gathering of people from
round the country as well as the world. GFCF is an initiative of the Goa Tourism Development
Corporation which celebrates the rich heritage, traditional cuisine and beautiful culture of the state.
The festival comprises more than 70 stalls serving the authentic delicacies.
Where: DB Bandodkar Grounds, Campal, Panaji
When: April
Other Highlights: Culture, Music and Ambiance

Foodistan, 10 Head Festival--As compared to other food festivals, Foodistan is not a

massive super-festival, rather, it’s a part of 10 Head Festival. A multi-dimensional festival that
gives you a perfect option for a family outing. From food, music, and culture to drinks, shopping,
parties and fun activities, 10 Head Festival offers a range of experiences at one place. Created by
10 handpicked curators, the festival focuses on 10 key interest areas, food being one of them. At
Foodistan, you can expect to see amazing restaurants and food trucks serving some delectable
delicacies and reviving drinks accompanied by music, entertainment and shopping.

Bar Promotion Ideas to Attract Customers and Increase Bar

Sales

1. One on One Offers or Happy Hours

The list of bar promotion ideas would be incomplete if Happy Hours is not
mentioned. One of the most tried and tested ways to promote your bar and
rope in a number of people on slow nights or even daytime is to run a happy
hour or one on one scheme. Such schemes not only boost the sale of your
liquor but also act as promoters as they catch attention for your brand. You
can post about this on your social media pages to create a hype and even
send personal messages to your regulars to act as reminders to visit you.

2. Loyalty Programs
Running rewards-based loyalty programs can actually work as a stellar bar
promotion technique.
3. Targeted Promotional SMS and Emails

4. Karaoke Nights
With the global trends merging together, Karaoke is not something people
shy away from. In fact, it is the next big trend on the block.

5. Live Screening
Ever thought how well you can use sports for the publicity of your bar?
Drinks and sports go hand in hand and you can use that fact in order to
promote your restaurant.

6. Slam Poems, Musical Gigs and Other Artistic Events

Nothing will promote your bar better than being the venue of an artistic
event. Not only will it bring in huge crowds of people, it will also feature your
bar on the social media handles of the event and initiate word of mouth
marketing. Hosting such events will also introduce you to a number of
potential customers who may not have come to your bar otherwise.

7. Fun-Fridays (Hosting Games)

8. Theme Nights

9. Competitions
A bit of competition is healthy for your bar, especially when it attracts people
and boosts sales. You can have competitions like ‘Ultimate Gaming
Showdown’ or ‘Dart King’. Regulars or people who usually engage in a sport
or games will love to show their talent and you will be able to serve huge
amounts of present and potential customers.

10. Couple Games

11. Online Competitions

Who said that competitions to promote your bar had to be offline only. You
can run an online campaign and generate a hashtag for the competition.

Press Releases
A press release is a news story written by an organization to promote a product,
organization, or person. Consider how much better a story or a product
recommendation is likely to be perceived when the receiver thinks the content is from
an objective third party rather than an organization writing about itself. Public relations
personnel frequently prepare press releases in hopes that the news media will pick them
up and disseminate the information to the public. However, there is no guarantee that
the media will use a press release. Some of the PR opportunities that companies may
seek to highlight in their press releases include charity events, awards, new products,
company reports, and things they are doing to improve the environment or local
community.

Read the following two examples of press releases. The first story sounds like it was
written by a news organization, but it was created by Apple and their public relations
people to highlight the introduction of the new iPhone 3G. The second press release and
picture (see Figure 12.1 "A Picture of Stubb’s Legendary Kitchen’s “Feed the World
Tour”") provide an example of how a company like Stubb’s Bar-B-Q teams up with
Mobile Loaves & Fishes, a charity that helps feed the hungry, to help feed homeless and
poor people and restock food banks around the country. The story enhances the positive
image of both organizations.

An Example of a Press Release to Introduce a New Product

Apple Introduces the New iPhone 3G

Twice as Fast at Half the Price

SAN FRANCISCO—June 9, 2008—Apple® today introduced the new iPhone™ 3G,

combining all the revolutionary features of iPhone with 3G networking that is twice as
fast* as the first generation iPhone, built-in GPS for expanded location-based mobile
services, and iPhone 2.0 software which includes support for Microsoft Exchange
ActiveSync and runs the hundreds of third party applications already built with the
recently released iPhone SDK. In the US the new iPhone 3G is priced at a stunning $199
for the 8GB model, and just $299 for the 16GB model.** iPhone 3G will be available in
more than 70 countries later this year, beginning with customer availability in 22
countries—Australi, Germany, UK and the US—on July 11.